Pensions & Retirement FAQs
If you have a workplace pension, you can view your fund value online at My Account or through your company's portal Manage Your Account.
For Defined Benefit pension schemes, there is no fund value.
Unlike defined contribution schemes, the pension calculation framework is pre-determined.
In a buyout, an insurer takes over the defined benefit pension scheme, including the fund, administration, and customer service.
Members become individual customers of the insurer.
Drawdown is not possible with a Defined Benefit final salary pension scheme. You would need to transfer to an alternative provider first.
Information will be provided in your policy documentation.
No, monthly payslips are not issued. A forecast statement sets out the details of your pension payments, and a revised statement will be sent if your pension changes.
For defined benefit pension schemes, there is no nomination of beneficiary, the benefits payable upon your passing are written within the scheme rules.
The transfer value is lower due to a change in financial conditions. Pension benefits are held in the Scheme, not a fund of money.
The transfer value is a snapshot value of all pension benefits at any given time.
Please note, even though your transfer value may have gone down compared to the previous transfer value we provided, your underlying pension benefits remain unchanged.
The calculation of the tax-free cash and residual pension is lower due to a change in financial conditions. The cash commutation factor (CCF) used to provide the TFC has decreased.
In your letter / welcome pack, the full pension secured is in ‘option 1’.
You have the option to give up some of this value to take a tax-free lump sum.
We use a cash commutation factor (CCF) to convert your ‘option 1’ pension into a ‘one off’ value. Find out more by X
The calculation is lower due to a change in financial conditions. The CCF used to convert the pension into a one-off value has decreased.
In your letter / welcome pack, the full pension secured is in ‘option 1’.
If this value is below triviality limit, you may be able to cash it in for taxable cash lump sum if eligible.
We use a cash commutation factor (CCF) to convert your ‘option 1’ pension into a ‘one off’ value. Find out more by X
Trivial Payments: If the total value of benefits from all your pension plans is more than £30,000 or your pensions total over £1,500 a year, you cannot cash in your benefits on the grounds of triviality.
Small Lump Sum Payments: If your pension benefits are worth £10,000 or less and you are aged 55 or over, you can take all the benefits as a small lump sum.
The PCLS is tax-free if you are under the Lump Sum Allowance threshold.
The maximum amount most members can take as a PCLS is £268,275.00.
Refer to the effective date shown on the retirement quotation for the start date.
Lump sum payments take 3-5 working days to clear once authorised.
Pension payments are made on the same day each month.
Yes, a P60 is sent at the end of each tax year showing gross payments made and income tax paid.
A forecast statement for the new tax year is attached.
Online services for Defined Benefit pensions are currently in development. You will be notified when you can register for My Account. In the meantime, contact our team for any questions.
What does the policy number or payment reference number on my welcome letter mean?
The policy number is the unique number for your pension scheme, and the payment reference number is your individual reference number.
You may be able to transfer benefits to another registered pension scheme.
If your Defined Benefit pension is worth £30,000 or more, professional financial advice is required.
Manual quotations requiring calculations from the Onboarding Calculation Team take 6-8 weeks to be issued.
These are Defined Benefit (formal final salary) pensions, which are not invested within funds and are not related to the stock market.
They are designed to pay you a pension income from retirement age for life. Revaluation rates and increases vary from scheme to scheme.
This information can be provided from a transfer quotation or a general enquiry.